The background is as follows:

A JV, formalised by an Agreement, comprising 2 tax compliant & VAT registered Close Corporations, wins a tender for R965k.
The JV comes into existence for the duration of the Tender and remains open until the warranty (on goods/services delivered) period has expired and is then wound up.

Because the individual CC's are VAT Vendors and despite the transaction value being less than the R1 million threshhold, it was elected to include VAT in the BID Price:

1. Can the JV register for VAT with SARS even though it is essentially only a partnership in order to offset output VAT against input VAT
2. Will the proceeds dibursed/distributed to the JV Members at the end be exempt from VAT given VAT is (could be) dealt with in the hands of the JV, and
3. If no to 1 and therefore 2, how should VAT be dealt with?